8 Red Flags of Bogus Investments You Must Not Ignore

Investing has become a common way for people to grow their assets and prepare for future financial needs. But not every offer can be trusted, especially those promising large profits in a short time. Understanding the characteristics of “investasi bodong”, or bogus investments, is key to avoiding lures that only look profitable.

A bogus investment is an illegal investment offer that promises large profits in a short time but has no business license or clear underlying asset. A list of warning signs published by RRI.co.id on 14 August 2026, reported by Dewi Suryati and edited by Ade Ramli, was compiled from djkn.kemenkeu.go.id and pegadaian.co.id. Pegadaian itself published a guide on 05 July 2026.

Contents

01

Unclear Business Process and Recruitment Bonuses

02

Unrealistic Returns and Fixed Guarantees

03

Social Media, Packages, and Legality

04

Ponzi Schemes and How to Protect Yourself

Unclear Business Process and Recruitment Bonuses

The first warning sign is an unclear business process. Bogus investments usually do not transparently explain their business activities, products, or the source of profits. Investors have the right to know how their funds will be managed.

The second sign is offering bonuses for recruiting new members. When profit depends more on bringing in new members than on real business activity, the scheme should be treated with caution.

Unrealistic Returns and Fixed Guarantees

The third sign is promising very high returns in a short time. Every investment carries risk, so promises of large profits with very small or no risk should be considered carefully.

The fourth sign is guaranteeing fixed returns and a buyback of assets. Investment results are not always fixed because risk can affect profit value.

Social Media, Packages, and Legality

The fifth sign is the use of social media and public figures. Illegal offers may be spread through social media, WhatsApp, Telegram, or other digital platforms, and may use photos or names of celebrities, religious figures, and public figures to appear credible.

The sixth sign is offering packages such as silver, gold, and platinum with different deposit amounts, where higher packages promise larger profits without an adequate business explanation. The seventh sign is unclear company legality: people should confirm the company and product are properly licensed, and not trust only a professional-looking name, office, or promotional appearance.

Ponzi Schemes and How to Protect Yourself

The eighth sign is non-transparent fund management. In some cases, bogus investments use a Ponzi scheme that pays old members' returns using funds from new members. Pegadaian notes many fraudulent operators run a Ponzi or money game scheme, paying old customers' profits with funds deposited by new customers.

The public is advised to prioritise caution and seek information from trusted sources before investing. Understanding these characteristics can minimise the risk of loss. Pegadaian recommends choosing instruments supervised by official institutions with clear underlying assets, such as gold, and notes Pegadaian itself is licensed and supervised by OJK.